Rising interest rates is the main stabilising factor in the housing market
The Ober-Haus Apartment Price Index (OHBI) in Lithuania, which records changes in apartment prices in five major Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.3% in April 2023 (the price index in March 2023 increased by 0.1%). The apartment prices in the major cities of Lithuania have increased by 14.0% over the last 12 months (the annual growth in March 2023 was 15.5%)
In April 2023, apartment sales prices decreased in Panevėžys decreased by 0.2% and the average price per square meter was EUR 1,054 (-2 EUR/sqm). In Vilnius, Kaunas, Klaipėda and Šiauliai, apartment sales prices increased by 0.2%, 0.4%, 0.3% and 0.3% respectively, and the average prices per square meter stood at EUR 2,550 (+6 EUR/sqm), EUR 1,710 (+7 EUR/sqm), EUR 1,607 (+5 Eur/m²) and EUR 1,083 (+3 Eur/m²) respectively.
Apartment prices rose year-on-year in April 2023 in all major cities of the country: 16.2% – in Vilnius, 11.7% – in Kaunas, 11.2% – in Klaipėda, 10.4% – in Šiauliai and 10.5% – in Panevėžys.
“Despite the technical recession recorded in Lithuania, where the negative growth of the country’s real GDP has been recorded for two consecutive quarters, the housing market is fairly stable and calm. According to the State Enterprise Centre of Registers, in April 2023, over 2,200 older apartments were purchased in Lithuania, or 3% less than in March 2023 and 3% less than in April 2022. In other words, no significant decline in activity in the largest housing segment has been recorded in the last few months and it can be said that under the current market conditions, a certain lower limit in the purchase volumes has been reached.
As the housing market data shows, the overall level of buyer activity, at least in the secondary housing market, remains relatively high, which helps homebuyers to keep house sale prices at record highs. As a result, in the last six months we have seen only a slight decrease or even an increase in sales prices in the country’s major cities, indicating that sales prices continue to remain stable. Despite the first signs of a shrinking economy and a poorer development outlook for 2023, at the moment potential buyers mainly only really feel the burden of rising interest rates on loans. According to the latest data from the Bank of Lithuania, in March 2023 the interest rate on newly issued housing loans exceeded 5% for the first time since 2009. It is clear that further interest rate increase will dampen the intent and ability of some buyers to purchase a home and reduce the likelihood of sales price growth. Thus, we can say that the ECB’s monetary policy measures are highly effective in stabilising the overall property market,” noted Raimondas Reginis, Head of Market Research for the Baltic Countries at Ober-Haus.
Latest news
All news
What is worth negotiating when renting an office today?
[caption id="attachment_69024" align="aligncenter" width="2560"] Ugnė Liaudanskienė, Office Leasing Manager at Ober-Haus[/caption] The large supply of new office space in Vilnius keeps rental prices stable, but also encourages more active negotiations between the parties. However, in long-term lease relationships, the most important thing is to balance mutual interests. Especially as the practical value is often determined not only by the price, but also by other aspects of the contract, such as flexibility, terms or additional conditions. In the office market, it has been said for some time now that the scales of power are tipping towards the tenant. Last year, base rents in Class A and B business centres rose by around 2%. Currently, monthly rents in Class A business centres are up to EUR 16-20/sqm, in new, exclusive projects they are as high as EUR 21-23/sqm, and in Class B business centres the prevailing rents are EUR 10-15/sqm. In 2025-2026, more than 100 thousand sqm of usable office space will reach the market. Despite the continuing economic growth, office rental growth is currently constrained by the large supply of vacant space, the ongoing transformation of tele-hybrid working, conservative business expectations and geopolitical reasons. The tenant's market would seem to be…
In 2025 developers built only half as much as buyers purchased
In 2025, the Lithuanian housing market was characterised by a particularly rapid increase in housing sales volumes in both the secondary and primary markets. According to the Ober-Haus review, a particularly rapid recovery was recorded in the primary market of large cities, where buyers were active in purchasing newly built apartments in completed and newly constructed buildings. Of all the apartments actually built and sold on the primary market, the capital city showed the greatest imbalance in 2025. According to Ober-Haus data, developers in Vilnius built 2,787 apartments for sale in apartment buildings in 2025, which was 8% more than in 2024. Meanwhile, over 5,700 apartments were sold on the primary market in Vilnius during the year, representing an increase of 82%. 'This means that developers actually built half as much as the recorded housing demand. Since the project planning and construction process is lengthy and often takes longer than planned, the rapid recovery of the market has left developers unable to meet demand," says Raimondas Reginis, Ober-Haus's market research manager for the Baltic countries. This situation is unfavourable for both buyers and developers. Buyers have limited choice and face rapidly rising prices, while developers are unable to fully exploit…
Sales of Dubysa Namai apartments in Ariogala have begun
The Dubysos Namai housing project in Ariogala is nearing completion. This five-storey residential building has been developed on a 0.75-hectare plot of land in the picturesque Dubysa Valley. This development will provide much-needed new housing for the town's real estate market, where supply has been extremely limited until now. Sales of the apartments have already begun, and prospective buyers can choose from a range of modern, well-designed homes. First-time homebuyer subsidies are available for young families. The development comprises 89 apartments, each with a storage room and parking space. The development will feature a children's playground, leisure areas, lighting and a gated entrance, creating a safe and comfortable environment for residents. Dubysos Namai offers two to four-room apartments ranging from 55 to 110 m² in size with partial finishing. The first phase of apartments has been completed and is ready for new residents to move in, while the second phase of construction is expected to be finished in Q4 of 2026. Almost all apartments have balconies and the option to install a fireplace, offering panoramic views of the Dubysa Valley. Many buyers are surprised that it is possible to install a fireplace in Dubysos Namai apartments. This is a rare…
All news